Shelbyville, IL USDA Eligibility

USDA Eligibility Guide

“Find out if you’re eligible for a USDA home loan with Smart Mortgage!”

Shelbyville, IL USDA Loan Eligibility Guide

A USDA (United States Department of Agriculture) mortgage, also known as a Shelbyville, IL USDA Rural Development Loan, is designed to assist low-to-moderate-income households in purchasing homes in eligible rural and some suburban areas. Here are the general eligibility requirements:

1. Property Eligibility:

    • The home must be located in a USDA-eligible rural or suburban area around Shelbyville, IL. The USDA provides an online tool to help potential borrowers determine if a specific property is in an eligible area.
    • The property must be used as the borrower’s primary residence.
    • The home must meet all local codes and program regulations.

2. Applicant/Household Eligibility:

    • U.S. citizenship or permanent residency is required.
    • The borrower must be unable to obtain a loan from other resources on terms and conditions that can reasonably be expected to meet.
    • The applicant must have a stable and dependable income, typically verified by two years of consistent employment. The income must also be sufficient to cover the mortgage payment, including taxes and insurance.
    • The household’s adjusted income must be at or below the applicable low-to-moderate income limit for the area.
    • A reasonable credit history. While a specific credit score is not mandated, a credit score of 640 or higher is typically required for streamlined processing. However, those with lower scores may still be eligible but may undergo a more stringent evaluation.

Questions Call (888)416-4805

Get Pre-Approved Now

    Once this form is completed you will have the option to start your USDA mortgage application.

    Thank you for choosing iloanusda.com

    Get cash from your home.

    Apply to see how a cash out refinance can help you.

    Get Cash

    Homebuyer Seminars

     Discover the keys to homeownership at our local home buying seminar – your first step towards securing your dream home!

    Seminars

    See our home loans.

    Explore our diverse range of home loan programs tailored to fit your unique needs!

    All Programs

    3. Income Limits:

    • Income limits vary by county and household size. You’ll need to check with our Shelbyville, IL USDA service center or the USDA’s online tools to see specific limits.

    4. Loan and Debt Ratios:

    • Typically, a 29/41 ratio is followed. This means that 29% or less of your monthly income can go towards your mortgage (Principal, Interest, Taxes, and Insurance) and 41% or less of your monthly income can go towards your total debt (this includes the mortgage and other debt obligations). Exceptions can be made in certain circumstances.

    5. Other Requirements:

    • Borrowers must personally occupy the dwelling as their primary residence.
    • The borrower must be legally able to take on the loan obligation.
    • First-time homebuyers are required to take a homeowner counseling class in some situations.

    6. Loan Terms:

    • The loan term is typically 30 years.
    • No down payment is usually required.
    • The interest rate can be set by the lender but is subject to USDA review.

    7. Guarantee Fee and Annual Fee:

      • The USDA charges an upfront guarantee fee, which can be rolled into the loan amount.
      • There’s also an annual fee, which is a percentage of the remaining principal amount, typically spread out in monthly installments.

    It’s crucial to remember that while these are the general requirements for Shelbyville, IL USDA mortgages, eligibility details can change. It’s always a good idea to consult with one of our Shelbyville, IL USDA home loan professionals. Get pre-approved with our easy and stress free Shelbyville, IL USDA home mortgage today.

    Call Now phone
    Do you need a Pre-Approval?
    Get a same day Shelbyville, Illinois USDA pre-approval to shop for your dream home!
    Start My Approval

    Mortgage Resource Center

    More About Shelbyville, Illinois

    Shelbyville is a city in and the county seat of Shelby County, Illinois, United States, along the Kaskaskia River. As of the 2020 census, the population was at 4,674. HSHS Good Shepherd Hospital, located in town, is the county’s only hospital. Shelbyville is also home to Chautauqua Auditorium.

    Shelbyville is the home of Josephine Garis Cochran who invented one of the first mechanical dishwashers ever built in 1886. It was exhibited at the 1893 Chicago Columbian Exposition, where it won “the highest award.”
    Another Shelbyville invention, the first commercial pick-up baler, was designed and developed by Raymore McDonald, as conceived and financed by Horace M. Tallman and his two sons, Leslie and Gentry. These balers were marketed for many years by the Ann Arbor Machine Company of Shelbyville. This concept of field processing of farm forages made a significant contribution to the efficiency and economy of harvesting in the world’s agriculture. This basic field pick-up mechanism has been used in over 15 million balers. The American Society of Agricultural and Biological Engineers designated Shelbyville as an historical landmark of agricultural engineering, of which there are only 47 in the entire United States. Mr. Tallman’s home has been restored and is on the National Register of Historic Places. Located on West Main Street, the Tallman home is currently part of the Shelby Inn.

    Shelbyville is located at 39°24′29″N 88°47′59″W / 39.40806°N 88.79972°W / 39.40806; -88.79972 (39.408142, -88.799730).

    According to the 2010 census, Shelbyville has a total area of 4.016 square miles (10.40 km2), of which 3.83 square miles (9.92 km2) (or 95.37%) is land and 0.186 square miles (0.48 km2) (or 4.63%) is water.

    Shelbyville was founded in 1827 and named in honor of Isaac Shelby, hero of the Revolutionary War and Governor of Kentucky. The history of Shelbyville begins with Barnett Bone, a Tennessean who, in 1835, built a log cabin along the Kaskaskia River. His cabin eventually became the county courthouse. The first businesses were blacksmith shops, a general store and stage coach stop, and a grist mill.